One of the key metrics for consumer investment apps is reducing the time to trade once an account is opened. However, slow funding can be a big friction for this engagement. To provide a seamless user experience, Alpaca has launched Instant Funding for Broker API, a new payment feature that gives your end customers instant buying power to start trading right away.
Customers Begin Investing Immediately with Broker API
Buying power is the availability of funds to investors in their brokerage accounts to begin purchasing assets. Due to fund transfer settlement times, market holidays, weekends, documentation errors, or time zone differences, customers often experience delays to receive their buying power.
With Instant Funding for Broker API, we improve the customer experience by allowing your end-users to begin trading immediately without waiting for funds to arrive and settle.
It helps to make the trading experience quicker, smoother, and more consistent. With instant funding, partners can remove the barrier of waiting 1-4 business days for their customers and let them trade instantly, leading to better engagement and reducing churn rates.
Single Bulk Payment to Settle Customer Accounts with Broker API
Funding Mechanism for Streamlined Flow of Funds
Alpaca offers various funding models that help partners streamline their operational flow of funds.
With the addition of Instant Funding for Broker API, you can wave goodbye to multiple international wires or domestic ACH transfers. Instead, a single payment is due on the the settlement date, removing the friction of creating batch journals or individual wires to fund every customer’s account. This simplifies reconciliation and ensures that you will be able to support your customers’ funding activity at scale.
To learn about the settlement date for instant funding transfers, how interest is late payments, and more read our FAQs.
Open Additional Revenue Streams
You can generate an additional revenue stream via an additional markup fee. This is dynamic and customizable, enabling you to strategically configure a spread markup based on your business needs and goals.
Set Specific Limits to End-Customer Accounts
Alpaca offers instant buying power of up to $1,000 per account while waiting for electronic fund transfers to arrive and settle. Broker API partners will have the ability to set specific funding and deposit limits for customers. Note that firm-level instant funding limits apply.
Instant Funding’s Summarized Features
- Enable access to instant buying power for end customers to start trading immediately
- Eliminate the need to pre-fund with Alpaca on T+0 for stock trading
- Configure a flexible fee mark-up to generate additional revenue streams
- Set specific limits on customer accounts for instant funding
- Integrate seamlessly with Broker API
- Support stock trading
- Streamlined and compliant reconciliation flow managed via API
Instant Funding Availability
Instant Funding for Broker API is currently available to select international partners who fulfill certain eligibility requirements.
To learn more, please contact our sales experts below.
To learn about the settlement date for stocks, limits, and more, read our FAQs.
For Existing Broker API Partners
Please contact your Customer Success Manager or our global support team to learn more:
For Future Partners
If you are new to Broker API and are interested in learning more about Instant Funding:
The content article is for general information only and is believed to be accurate as of posting date but may be subject to change. Alpaca does not provide investment, tax, or legal advice. Please consult your own independent advisor as to any investment, tax, or legal statements made herein.
All investments involve risk, and the past performance of a security, or financial product does not guarantee future results or returns. There is no guarantee that any investment strategy will achieve its objectives. Please note that diversification does not assure a profit, or protect against loss. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.
Securities brokerage services are provided by Alpaca Securities LLC ("Alpaca Securities"), member FINRA/SIPC, a wholly-owned subsidiary of AlpacaDB, Inc. Technology and services are offered by AlpacaDB, Inc.
This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Alpaca Securities are not registered or licensed, as applicable.
